IBM Looking to Sell Chip Business

The internet has been buzzing over the rumors that IBM is looking to sell off its entire chip business to someone else. As of right now we cannot deny or confirm these rumors, but will all the buzz it looks like this might be happening.

IBM Looking to Sell Chip Business

IBM actually has two foundries. The first is Building 323 facility in East Fishkill, New York. This foundry produces 300 mm wafers and is currently manufacturing chips on the 22nm process. The second complex, which is older is located in Burlington, Vermont and is the corporations main semiconductor production location. It has wafer fabs, photomask shops and other operations. Everything from PowerPC processors to silicon-germanium (SiGe) communication devices are made there.

There can only really be a few potential buyers for IBM’s chip business. These would be Taiwan Semiconductor Manufacturing Company (TSMC), Intel and Global Foundries. TSMC is currently denying all acquisition rumors. Intel would be an ideal buyer, but currently they do not require additional foundries. They recently postponed the opening of their Fab 42 plant because of captial issues and that their Fab utilization is at 80%.

IBM might not want to let its plants go though. They might just want someone else to own and operate them. This is what AMD did with Global Foundries. Global Foundries owns and operates the plant while AMD is on contract with them. That could make Global Foundries and possible buyer in this as well, but it is unlikely.